In this article, you will find the following:
Definition of Online Bank Account
An online bank account is an account that is offered exclusively online. This does not necessarily exclude traditional banks. Banks with physical branches may offer online-only bank accounts to online users. However, many banks that operate entirely online provide better advantages by avoiding the operational costs associated with traditional banks (sub-branch rent, staff to fill the building during business hours, etc.).
Main Considerations
When shopping around, focus on the following features and prioritize the things you consider most important to you. Except for ensuring proper security, none of these considerations are necessities. Some banks excel in some of these areas, while others do not offer even some of these features.
Annual Percentage Yield (APY): This is usually the most important attraction for users looking for rates, as it determines how much money you will earn by keeping your funds in the account.
Access to Funds: If you want to withdraw money and spend it, how much effort do you need to exert? What is the processing time?
Number of Linked Accounts: Can you set up a network of accounts and move money back and forth as needed?
Additional Products and Services: Can you purchase certificates of deposit, get a mortgage loan, or pay bills online? Do you receive a debit card to spend the funds?
Leveraging Existing Banking Relationships: If the institution you’re already dealing with has an online bank account, you may qualify for some additional perks by keeping all your business in one place.
Customer Service Options: How easy is it to get answers to your questions? Do they operate during hours that fit your schedule? Read some user reviews of the bank you’re considering to get an idea of its customer service reputation.
Automatic Savings Plans: Can you set it to auto-mode and let the funds accumulate automatically?
Ease of Use of the Website or App: How easy is it to use the app or website for this account? Is it plagued by bugs or issues? Since you will interact with this account entirely online, it’s important to feel comfortable with the user interface.
Security and Safety: Is the bank insured by the FDIC? Do you trust their security process?
It’s important to understand the benefits of all these features, but the perfect mix of features depends on your banking style. Compare the features of different online bank accounts, and then decide which one best serves your financial goals.
For example, you may decide that maximizing interest earnings is the most important thing for you. Therefore, you won’t care about many of the features mentioned above – you will just choose the bank that offers the highest APY. Others who like to move money frequently or withdraw cash from ATMs may emphasize access to funds.
Getting Started with Your Search
Here you will find some of the most popular online bank accounts. This is not a comprehensive list – it is just to get you started and provide some information for you to conduct your own research. These are some of the most popular online bank accounts, which should give you a basic idea of what these accounts have to offer. It’s also worth considering the reasons to avoid online bank accounts before you jump into the world of digital banking.
Capital One 360 Online Bank Account
Ally Bank
EmigrantDirect Online Bank Account
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Source: https://www.thebalancemoney.com/internet-bank-accounts-315150
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